Residential remodeling activity continued to show resilience during the second quarter of 2026, according to the latest Remodeling Market Index (RMI) released by the National Association of Home Builders (NAHB). While the index edged down slightly from the previous quarter, it remained in expansion territory, indicating continued confidence among remodeling contractors.
The overall RMI posted a reading of 61 in the second quarter, one point lower than the previous quarter but remaining above the benchmark of 50 that signals positive market conditions.
The Current Conditions Index held steady at 70. Large remodeling projects valued at $50,000 or more recorded an index of 64, while moderate-sized projects increased to 73. Small remodeling projects remained at 74, reflecting continued activity across project sizes.
The Future Indicators Index declined two points to 52. Measures of new leads and inquiries registered 51, while the backlog of remodeling projects stood at 54.
NAHB reported that rising construction costs remain one of the primary challenges facing remodeling contractors. According to the survey, 74% of remodelers indicated that suppliers increased material prices since March, with respondents reporting an average increase of 6.7%.
The association also identified financing conditions, higher interest rates, and broader economic uncertainty as factors affecting larger residential remodeling projects. At the same time, growing homeowner equity and the nation's aging housing stock continue to support demand for renovation and improvement work.
The Remodeling Market Index provides construction owners, residential contractors, suppliers, and developers with insight into remodeling demand and contractor sentiment. Continued positive readings suggest that residential renovation remains an active market segment, although rising material costs and financing conditions continue to influence project planning and pricing.
Source: NAHB.
